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PETALING JAYA (Aug 4): Amcorp Properties (AmProp) stands to benefit from the weak ringgit given that the returns on its London projects will increase with the appreciation of pound sterling against the Malaysian currency, reports the digitaledge DAILY today.
“With the disposal of Merchant Square in Paddington, London, the group will have enough to meet the commitment for the projects’ funding in London,” said group managing director, Ben Lee.
“Both our loans and revenue are [denominated] in pounds so there is no need to hedge; we have enough pounds to meet capital commitment,” Lee said after the group’s annual general meeting yesterday.
Lee said AmProp’s share of the ongoing projects in London has a gross development value (GDV) of RM1.4 billion.
The projects include Burlington Gate in Mayfair and Holland Park Villas in Campden Hill, in which Amcorp owns a 25% and 16.7% stake, respectively.
Burlington Gate, which has a GDV of £275.8 million (RM1.78 billion), is expected to be completed in 2017; while Campden Hill (GDV: £607.7 million) is expected to be completed in 2016 or 2017, he said.
The RM1.4 billion excludes the Bankside Quarter project, which Lee said will have a GDV of more than £1 billion.
AmProp has a 30% stake in the residential-led mixed-use development project, together with Singapore’s sovereign wealth fund Temasek Holdings, Singapore-listed Hotel Properties Ltd and Native Land of UK.
The acquisition is expected to be completed in the fourth quarter of this year, and the project is expected to be completed between 2019 and 2020.
